'Remonetisation must be expedited'

BHUBANESWAR: Naushad Forbes, the president of Confederation of Indian Industries (CII), on Wednesday said demonetisation of the Rs 500 and Rs 1000 currency notes had impacted industries across sectors cutting down demands, but remonetisation work must be expedited and completed soon to reduce the pain of small vendors and traders.
"The demonetisation has impacted industries.Though big companies can withstand it for some time, street vendors and small traders will suffer if sufficient cash flow is not ensured at the earliest," Forbes cautioned. Post-demonetisation, the overall demand has fallen by about 30%, he said.
Justifying the demonetisation move, he said the decision would help the country in the long term. "The short-term impact is nevertheless severe, painful and negative. The small business community has been hit. Their problems have to be alleviated soon, failing which their condition may worsen," he said.
Forbes said the situation since the Prime Minister announced demonetisation on November 8 had vastly improved and many organisations including those having large number of workforce have been trying to switch over to electronic transfer of dues like salaries and other payments.
Forbes said the CII had advised the government to import currency notes to tide over the cash crunch crisis. There are organisations which print currency for many countries. "We understand the government had recently invited tenders for the purpose. We hope the decision would be expedited," he said. January will be too far. By December-end the currency note shortage should end. If it drags on, the crisis will deepen, he added.